Will the VAT rate on Books rise in Belgium? In a context of both generalized inflation and negotiations to form a federal government, this could increase from 6 to 9%. Unthinkable for many actors: “ This would endanger our very existence » worries, for example, about Weekly Books Gérard Adamdirector of MEO publishing
While Dutch-speaking Belgians wish to align themselves with the policy implemented in the Netherlands (9% VAT), French-speaking Belgians want to remain subject to the regulations of the French market, with a VAT of 5.5% ( raised to 6% in Belgium). By modifying this last status quo, the new federal government could thus generate a new profit of 8 million euros annually on a book market which weighs 265 million euros (VAT included).
Falling margins, rising prices
If the increase of 6 to 9% becomes widespread throughout the territory, Carine Lecomtegeneral director of the Association of Belgian Publishers (ADEB) joined by Weekly Booksfears “ a total upheaval of the book ecosystem. According to a statement from the ADEB, “ a 3% increase in the sales price for the benefit of the State would result in a drop of 2.5 to 3% in the margins of the entire inter-professional sector. » Gérard Adam, at MEO, abonde: « Our current margin is around 5%. With an increase in VAT, our profits will plummet. Belgian literary publishers could not survive more than a year. »
To counter this reform, an increase in the price of French-speaking Belgian books could be considered. But, ” if the sale price should increase by 3%, libraries and schools will buy 3% fewer books, due to lack of budgets », fears ADEB. For Gaëlle Charongeneral delegate of the Union of French-speaking bookstores of Belgium also contacted by Weekly Booksthe risk is also that consumers carry out “ a return to the web » and that the book “ is no longer a good considered essential. »
Difficult French-speaking book market
Especially since 2022, the book market in Belgium has become fragile. “ We have suffered an increase in the price of raw materials, a paper crisis, production costs (+30 to +60% over 15 months) and transport costs. », explains Carine Lecomte. Added to this observation is the wage indexation specific to Belgium, which ADEB estimates, from 2020 to 2025, at +23%.
However, the latest GFK data mark a slight improvement in the book market, after more than 20 months of decline. The 3e quarter 2024 compared to the same 2023 statement even shows a stabilization of volumes (+ 0.2%) and a slight increase in turnover (+ 1.8%). However, the upward trend should be qualified. In 2023, the book market recorded a significant fall with a drop in sales of -8.6%.
The Belgian market already depends, to a large extent, on French production. “ 80% of books sold in Belgian bookstores are French » reports the Union of French-speaking bookstores in Belgium. Until now, Belgian booksellers cover the minimal difference with French VAT.
If VAT increases to 9%, Belgian booksellers would suffer from the maintenance of French prices and their already low margin (1.5% net margin) would not be able to cover the differential of 3.5 points of VAT. The increase in the price of French books, once crossing the Belgian border, would then be necessary and would force booksellers to relabel their entire stock. The cost of this time-consuming operation was estimated at 3.4 million euros by ADEB.
Decrease rather than increase
ADEB and the Éditeurs Singuliers association are also alarmed by an increase in the final price of Belgian books which “ would directly impact readers and reduce competitiveness on the European market “. Not to mention the authors who would not benefit from this increase either, whose rights are calculated on the sales price excluding tax.
Already debated last year by the former government, the increase in VAT on books has become a sea serpent in Belgium. To counter it, ADEB instead proposes maintaining VAT at 6% or “granting it a rate of 0% as authorized by the European directive”, suggests ADEB. A petition supporting this reduction has more than 8,000 signatures since March 27, 2023. Belgium would then join Poland, Great Britain and Ireland.
